President Trump, India’s Modi to tackle trade, tariff tensions at high stakes meeting

President Donald Trump is expected to welcome Indian Prime Minister Narendra Modi to the White House on Thursday. As only the fourth world leader to meet the president since the start of his second term, the conference emphasizes the importance of US-India relations.

Modi, India’s most well-known leader in decades, is primarily Popular yet polarized He will be seen both at home and abroad. New Delhi officials are optimistic that his visit will pave the way for a new strategic partnership. Trump and Modi are expected to cover a wide range of issues. Trade and tariffs are expected to control it.

Reuters reported that Modi is expected to meet with billionaire tech CEO Elon Musk. The two men are said to have a friendly relationship, and in 2023 Musk met Modi.

Siddhartha Dubee, visiting professor of journalism at Bennett University in India, told Fox Business, “Trade is the most important agenda, and this time it holds a secondary position in defense and foreign policy.” . Countries “have no progress in trade contracts,” he said.

India, the world’s fastest growing major economy, is spared the tariffs so far. However, interests remained rising.

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“This is one of our strongest International Partnership In recent years, Dubey said.

Trump and Modi enjoy strong personal relationships, and their conferences will shed more light on the evolving dynamics between the world’s most populous democracy and its most powerful democracy. It’s expected.

The United States is India’s largest trading partner, with trade reaching a record $129.2 billion in 2024. Currently, the trade surplus is around $35 billion courtesy of India. India is also one of the most protectionist economies, and Trump is certainly looking for more access.

Dubey warned, “Personally, many Indians feel that Delhi is in the crosshairs of Trump soon.” In particular, Trump news says it will implement mutual tariffs on countries with tariffs on US goods that may include India. And recently, he introduced a 25% tariff on everything. Imports of steel and aluminum There are no exceptions. But Modi is keen to avoid potential trade wars. Over the next few days, he is expected to offer some major concessions in his attempts to move towards what the White House calls a “fair bilateral trade relationship.”

India has already shown its willingness to ease its own tariffs on what is considered a preemptive move Stop US tariffs. India has reduced its US major export obligations. For example, this month India cut motorcycle tariffs in a move that would benefit American company Harley-Davidson. US motorcycle exports to India reached just $3 million last year.

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Despite the measures India has taken to address Trump’s concerns, the country remains at risk. Trump has often criticized India as one of the “very major tariff abusers,” and last month he called the country a “risky tariff maker.”

Trump’s top economic adviser Kevin Hassett on Monday reflected those criticisms, saying tariffs that “very high for India” are tariffs that serve as import barriers. During his first term, Trump opposed India’s sudden tariffs and dubbed it as “Talent King.” in In 2019 he cancelled India’s special trade privileges have spurred India to retaliate by slapping tariffs on dozens of US goods.

According to World Trade Organization data, the simple average tariff rate in India is 17%, significantly higher than the US’s roughly 3.3%.

“This is unfair,” Dubey told Fox Business. “And I don’t think President Trump will turn a blind eye. India must cut its high tariffs, and there is no doubt about that,” he added.

Nevertheless, India is confident that it can navigate Trump’s “America’s first” policy. Future meetings are expected to suggest an increase in imports of energy products from the US to address trade imbalances. Indian oil secretary, according to a company that hopes to purchase US liquefied natural gas after Trump lifts the ban on new export permits. As the fourth largest importer of liquefied natural gas, India is well placed to promote energy trade with the US

Regarding defence imports, Reuters reports that Modi has negotiated the purchase and joint production of combat vehicles and has completed a fighter engine deal. India is the world’s largest importer of military equipment, and Trump hopes the country will buy more US security equipment. This push comes as the US and Russia compete to secure India’s fifth-generation fighter contracts. New Delhi also focuses on increasing investment from US companies in the manufacturing and services, particularly the insurance sector.

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Modi arrived in Washington on Wednesday after visiting France for a global conference on artificial intelligence. While he was there, Modi met With Vice President JD Vance, we will further strengthen our diplomatic relations. In a departure statement, Modi expressed his zeal for a meeting with “my friend, President Trump.”

Although trade relations with India have grown steadily over the years, Modi has acknowledged that it is possible to deepen partnerships in several key areas, including technology, trade, defense, energy and supply chain resilience. Masu.

“Modi and his team need to do more to ease Trump and his team lifting certain obligations and making India extremely friendly to US exporters,” Duby said. Ta.